Nigeria lost an estimated 3,100 gigawatt-hours (GWh) of electricity generation potential in May 2026 after oil companies flared gas across the country’s oil-producing regions, according to regulatory data.
The loss adds fresh pressure to the Federal Government’s plan to build a gas-driven economy by 2030, a target that now appears increasingly difficult to meet.
Two regulatory bodies gave conflicting figures for the volume of gas flared during the month. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recorded 17.6 billion standard cubic feet of gas flared in May 2026, while the National Oil Spill Detection and Response Agency (NOSDRA) put the figure at 30.7 billion standard cubic feet.
According to NOSDRA, the monetary value of the gas flared during the period stood at $107.5 million, and the defaulting companies, including International Oil Companies, are liable to penalties amounting to $61.4 million. The agency also said the volume of gas flared translated into carbon dioxide emissions estimated at 1.6 million tonnes.
NOSDRA noted that gas flaring has persisted in Nigeria since the 1950s, releasing carbon dioxide and other harmful gases into the atmosphere, despite repeated government commitments to curb the practice.
The Federal Government launched its Decade of Gas initiative in 2021. Under the initiative, Nigeria aims to become a gas-powered economy by 2030 through improved power supply, industrial utilisation and increased gas exports.
Checks show that Nigeria’s inability to consistently generate more than 4,000 megawatts of electricity for households and businesses is partly linked to inadequate gas supply to power generating companies, even as investment in the gas sector has grown.
The Renevlyn Development Initiative, a civil society organisation, has called on the Federal Government to impose an outright ban on gas flaring. The group argued that oil companies operating in the Niger Delta are more comfortable paying penalties than ending the practice.
The organisation’s position followed data covering March 2012 to 2025, which showed that oil companies operating in Nigeria paid an estimated $646 million in gas flaring penalties in 2025, the highest figure in five years.
Nigeria’s gas flaring losses have been rising in recent years. NOSDRA data for the full year of 2025 showed the country flared 323 billion standard cubic feet of gas, with a power generation potential of 32,300 GWh, up from 30,100 GWh in 2024.
Efforts to reach the NNPC Limited and the NUPRC for comment on the discrepancy between the two agencies’ figures were unsuccessful as of press time.
Analysts say closing the gap between gas production and gas utilisation will require faster investment in flare-capture infrastructure, alongside stronger enforcement of existing penalties, if Nigeria is to meet its 2030 gas economy target
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